after a Chapter 7

[frankie385]

Hi there folks,
I am new to this forum...and i have a question to ask.
how difficult is it to start a business after you have personally file Ch. 7?

I've filed for Ch. 7 but have not been discharged yet! I have not been able to find work at all, so the only thing for me to do is to start a new business, and wanted to know how dificult it is to get start up money under a new Co.
your input will be greatly appreciated, specially if you have been thru this situation in the past.

Best Regards
Franklin

[OhioFiler]

You'll probably have to raise capital through non-traditional means. I doubt many banks will touch you for a business loan on a new company shortly after bk.

[frankie385]

I was afraid that would be the case! so even if Co. "X" is a separate entety from my persona, banks will still look at my personal records, right?

[OhioFiler]

I was afraid that would be the case! so even if Co. "X" is a separate entety from my persona, banks will still look at my personal records, right?

You'd have to personally guarantee the company's loans.

[frankie385]

I see! anything else you want to add, thanks for the help by the way!

[OhioFiler]

I see! anything else you want to add, thanks for the help by the way!

Start a business that doesn't require much capital to get off the ground!

Good luck with your future! Hard work and determination are the keys to successfully running your own business.

[frogger]

It's no problem to set up a corporation or get a business license. However, as Ohio has already pointed out, funding is going to be a problem. Any idea of what you're going to do yet? You probably need something that requires skills and very little capital. Good luck.

[frankie385]

I want to start a Real Estate business in which the company buys RE whole sale and obtains cash flow from rentals and/or sale of rehab properties.

[Pizza]

I want to start a Real Estate business in which the company buys RE whole sale and obtains cash flow from rentals and/or sale of rehab properties.

Umm.... good idea, but how were you (or the 'business') going to be able to buy all the properties?

[debtmonster]

I am self-employed. It cost me less than $100 to get started. I slowly built up. The problem is that it took over 6 months before I started seeing a positive cash flow.

When you own your own business it's great, but it takes years to become really profitable when you don't have up front capital.

[OhioFiler]

I am self-employed. It cost me less than $100 to get started. I slowly built up. The problem is that it took over 6 months before I started seeing a positive cash flow.

When you own your own business it's great, but it takes years to become really profitable when you don't have up front capital.

If it only required $100 start up cash how is it you took 6 months to generate positive cash flow?

[Kpower]

Probably because it is a MLM and he had to keep dumping money back into it to get products to sell. Also you have to advertise and convince other people to join your network before you can make any real money.

[hereforinfo]

I want to start a Real Estate business in which the company buys RE whole sale and obtains cash flow from rentals and/or sale of rehab properties.

The problem with that is you would need a mortgage, which no bank is going to give you for a long time (especially for an investment property). Even when you could qualify in a few years you would need 20% cash down plus closing costs. You'd need cash to rehab it, plus money to pay the mortgage and utilities for several months while it's being worked on and until it's rented or sold. And in order to generate enough income on rentals to support yourself you would need to own several of them. It often takes several years for rentals to generate cash flow because you have to wait for the rents to increase above the mortgage expense.

All of the above would be challenging enough in a booming economy and housing market. Nearly impossible now that we're in a housing slump. There's not much to be made in rehabs/flips because it takes so long to sell that any little profit that you'd potentially make would be eaten up in the mortgage interest you'd have to pay while it sits on the market. There are a lot of people on this board who are here because they attempted and failed at this.

[backtoschool]

I don't think you are going to be able to get mortgages to buy properties so soon after bankruptcy. The only business that you could start quickly would be one with low start up costs, like a consulting business or something like that.

[whipster1]

Best situation would be to start a corp and build up the corp credit. There are a few boards on the net that deal with this, I personally like credit boards dot com, they have a "building business credit" board.

Good luck!